The Council of Ministers, by its decision of 19th March 2014, passed a Scheme for the Naturalization of Investors in Cyprus by Exception, on the basis of subsection (2) of section 111A of the Civil Registry Laws, as has been amended.

A non-Cypriot citizen, who meets one (either) of the following economic criteria, either personally or through a company in which he participates as a shareholder – proportionally based on the percentage of participation, or even as a high-ranking senior manager of a company that meets one of economic criteria below, may apply for the acquisition of the Cypriot citizenship through Naturalization by exception. A high-ranking senior manager may apply, provided that he receives such a remuneration that generates for the Republic tax revenue of at least €100,000 for a three year period and provided that this tax has already been paid or prepaid.

The applicant should have concluded the necessary investments during the three years preceding the date of the application and must retain the said investments for a period of at least three years since the date of the Naturalization. In addition,the applicant must fulfill certain Terms and Conditions provided further below. In the case where, following a periodic inspection, it has been ascertained that any condition is being circumvented, the Naturalization may be revoked.

1. Criteria

Investment in government bonds

The applicant must have purchased state bonds of the Republic of Cyprus of at least €5,0 million. For purposes of the citizenship application are eligible bonds purchased both from the primary market as well as from the secondary market until the 31st of July 2014. However, as from the 1st of August 2014 only the bonds purchased from the primary market (i.e. directly from the primary market) solely will be eligible.

Investment in financial assets of Cypriot companies or Cypriot organizations

The applicant must have purchased financial assets of Cypriot companies or Cypriot organizations (bonds/securities/debentures registered and issued in the Republic of Cyprus) of at least €5,0 million. It is noted that these financial assets can be purchased either at issuance, or subsequently by the market.

Investment in real estate, land development and infrastructure projects

The applicant must have made an investment of at least €5,0 million for the purchase or construction of buildings or for the construction of other land development projects (residential or commercial developments, developments in the tourism sector or other infrastructure projects)

The following should be noted:

This criterion includes investments for the purchase or construction of buildings, or the creation of other land developments(residential or commercial developments, in the tourism sector or other infrastructure projects). Therefore,the term cannot be interpreted broadly and the restriction concerning the purchase of land has not been lifted.

The VAT is neither included in the amount of €5,0 million for the “Direct Investments”, nor in the amount of €500.000 required as a minimum purchase value of the privately-owned residence

The transfer duties are not included in the amount of the investment, as no other charges or taxes are.

The amount to be taken into consideration for the purposes of the Policy is the purchase value of the property and not its market value.

According to the contents of the Council of Ministers’ Decision, the eligible investment is not limited to properties purchased for the first time. Re-sales are also considered as eligible investments.

Purchase or creation or participation in Cypriot businesses or companies

The applicant must have made an investment of at least €5,0 million in the purchase, creation or participation in businesses or companies, that are based and operating in the Republic. These businesses or companies should evidently have a tangible presenceMeans that the companies or businesses in which the applicant shall invest must maintain offices in Cyprus. in Cyprus and employ at least five (5) Cypriot citizens. It is noted that the mandatory conversion of deposits into shares is included in this criterion. The creation or participation in the companies/businesses is proven by the purchase of the company’s or business’ shares, either existing shares, or through capital increase.

Combination of Criteria

Combination of the aforementioned criteria (1) Investment in government bonds, (2) (Investment in financial assets of Cypriot companies or organizations, (3) Investment in real estate, land development and infrastructure projects, (4) Purchase or creation or participation in Cypriot businesses or companies and (5) Deposits in Cypriot banks. The applicant is required to have a combination of the aforementioned investments of at least €5,0 million.

Persons whose deposits with the Popular Bank Public Company Ltd have been impaired due to the measures implemented after the 15th March 2013

The applicant has incurred an impairment in deposits amounting to a total of at least €3,0 million. In the case where the applicant has incurred an impairment in his deposits under €3,0 million he may apply, having made an additional investment through any of the other criteria to complete the balance of the required amount, namely:

(3) Investment in real estate, land development or infrastructure projects,

(4) Purchase or creation or participation in Cypriot businesses and companies, and

(5) Deposits in Cypriot Banks. An Investor is eligible to apply for citizenship if the deposits are not personal, but rather they are of a company (or companies) of whom he is the major shareholder or even the ultimate beneficial owner, provided the correlation between the Investor and the company/ies is sufficiently proven.

According to the Decision of the Council of Ministers investors, who suffered a deposits impairment with the Bank of Cyprus, are not included in this criterion, but rather in the Criterion relating to the Purchase or creation or participation in Cypriot companies and businesses, since their deposits were mandatory converted into shares. According to the content of the Decision, if the impairment amount is less than €3,0 million, the investor can make an additional investment through the other criteria, to supplement the amount of €5,0 million.

Groups/Major Collective Investments

The Council of Ministers shall have the right on special occasions, to reduce the above criteria, namely, (1) Investment in Government bonds, (2) Investment in financial assets of Cypriot companies or Cypriot organizations, (3) Investment in real estate, land development or infrastructure projects, (4) Purchase or creation or participation in Cypriot businesses and companies to such amounts and in such cases as described below:

To €2,5 millions for investors, who demonstrably participate in a special collective investment scheme (groups), provided that the total value of the investment is at least €12,5 millions.

In addition, it is important to be clarified that the investment for the Criteria (1) until (4) stated above, may be realized through a different salesman/ provider (physical or legal entity). Essentially, it is sufficient that a group of investors who have individually invested at least €2,5 millions and collectively the amount of at least €12,5 millions in permissible investments, may apply as a group for the citizenship under this policy, through the same service provider.

2. Terms and Conditions

Apart of the above Criteria, the applicant must fulfill the following significant terms and conditions:

Clean Criminal Record

The applicant must have a clean criminal record. Furthermore, his name must not be included on the list of persons whose property is ordered to be frozen within the boundaries of the European Union.

Residence in the Republic of Cyprus

In any event and irrespective of the number of the criteria that the applicant complies with or the extent in which they are fullfilled, the applicant must hold a permanent privately-owned residence in the Republic of Cyprus, the purchase price of which must be at least €500.000, plus V.A.T.

It is noted that members of the same family, which apply separately as investors, can collectively acquire a residence, provided that the total value of this home-property covers the amount of € 500.000 per each applicant. It is important to note that the purchase value of the privately-owned residence of the applicant investor in Cyprus is not included in the minimum investment which is required for the submission of the application, but rather it is additional.

However, if an applicant decides to invest in the purchase of a privately – owned residence solely, of a purchase price either €5,0 million or of €2,5 million accordngly, then is not oblige to buy a further privately – owned residence of purchase value €500.000. It must also be noted that the Investor is entitled to rent out the residential house to a third party. The Investor may also sell his privately-owned residence and purchase a different one of the same or higher purchase value. A privately-owned residence may be purchased by persons who are members of the same family up to the second degree of kindred.

3. Submission of Documents

In order to examine any applications the submission of the following documentary evidence is required, together with the applicable form (M127):

Clean Criminal Record

Certificate of Clean Criminal Record from the country of origin and the country of residence (if it differs). The Criminal Record must be not older than six(6) months on the date of the application.

Residence in the Republic of Cyprus

(a) Contract of Sale;

(b) Title Deeds/Receipt for lodging the contract with the Lands and Surveys Department;

(c) Receipts for paying the agreed purchase price;

(d) Copy of the wire transfer in the Cypriot commercial banking institution in the name of the seller or the seller’s company.

Additional requirements depending on the case

(a) Certificate of Registration of the company/ companies by the Registrar of Companies;

(b) Certificate of shareholders by the Registrar of Companies or certificates evidencing that the applicant is the beneficiary owner of the company/companies;

(c) Audited Accounts of the company (or companies) for the last three years preceding the year of the application;

(d) If the applicant is a high-ranking senior manager the submission of the employment contract and the receipt from the Department of Inland Revenue is additionally required.

Other Documents

Any other document that might be requested either by the Ministry of Interior, or by the Ministry of Finance.

4. Depending on the Type of Investment, the following are required:

Investment in Government bonds

Receipts from the Treasury of the Republic of Cyprus for the purchase of the Government bonds.

Investment in financial assets of Cypriot companies or Cypriot organizations

(a) Title/titles and other documents regarding the financial assets;

(b) Copy of the wire transfer in the Cypriot commercial banking institution in the name of the company or the organization.

Investment in real estate, land development or infrastructure projects

(a) Contract of sale;

(b) Title Deeds/ Receipt for lodging the contract with the Lands and Surveys Department;

(c) Receipts for paying the agreed purchase price;

(d) Copy of the wire transfer in the Cypriot commercial banking institution in the name of the seller or the seller’s company.

Purchase or creation or participation in Cypriot businesses and companies

(a) Contract of sale;

(b) Receipts for paying the agreed purchase price;

(c) Certificate of shareholders by the Registrar of Companies or certificates evidencing that the applicant is the beneficiary owner of the company/ companies;

(d) Copy of the wire transfer in the Cypriot commercial banking institution in the name of the company or the organization;

(e) Confirmation from the Social Insurance Department as to the insurable income of the Cypriot employees in the company;

(f) Confirmation from the Inland Revenues Department as to the taxable income of the Cypriot employees in the companies or businesses that the applicant invested in.

Deposits in Cypriot banks

(a) Confirmation from Cypriot banks as to the fixed term deposits for three years of the applicant or the companies in which he is the beneficiary owner or of the trust in which he is the beneficiary owner;

(b) Copy of the wire transfer in the Cypriot commercial banking institution.

Impairment of deposits in the Popular Bank

(a) Confirmation as to the level and the time of the impairment of the deposits;

(b) In the case of deposits of companies of which the applicant is the beneficiary owner, the Certificate of Registration of the Company by the Registrar of Companies and/or any other evidence, along with a declaration from the trustee of the funds confirming the beneficial owner is to be attached.

The Decision of the Council of Ministers dated 19th March 2014 for the Naturalization of Investors by Exception, provides for the grant of the Cypriot citizenship to the spouse as well as the financially dependent adult children (eighteen years old or above) of the investor. Neither the spouse nor the children are obliged to meet any financial criteria. For further information see the next Tab/Section “Family Members” posted on this page.

The examination procedure begins upon the submission, at the Ministry of Interior, of the prescribed application Form (M127) and the payment of the amount of €2.000,00 examination fee. Together with the application, the following original documents must be submitted, along with a photocopy of all the documents:

Letter by the applicant or by the representative of the applicant, in which the investment and criterion, under which the application is submitted, are briefly explained.

Application Form M127 fully completed and signed before a Registrar of a Cypriot court or a consular officer

Birth Certificate

Copy of passport

Certificate of criminal record from the country of origin, as well as the country of residence (if it differs) of the applicant

Marriage Certificate

Copies of advertisements in a daily newspaper two consecutive posts

Two passport size photographs

Curriculum Vitae

Documents concerning the permanent privately-owned residence of the applicant in Cyprus:

(1) Contract of Sale

(2) Title Deeds/ Receipt for lodging the contract with the Lands and Surveys Department

(3) Receipts for paying the agreed purchase price

(4) Copy of the wire transfer in the Cypriot commercial banking institution in the name of the seller or the seller’s company

If the applicant is a high-ranking senior manager the following documents should, also, be submitted:

(1) Copy of the employment contract

(2) Copy of the receipt by the Inland Revenue Department

Documents evidencing the investments of the applicant in the Republic. These documents may include:

(1) Certificate of Registration of the company/ companies by the Registrar of Companies

(2) Certificate of shareholders by the Registrar of Companies or certificates evidencing that the applicant is the beneficiary owner of the company/ companies

(3) Audited Accounts of the company (or companies) for the last three years preceding the year of the application

Useful and Important Notes

The original application (M127) and all the required documents original documents are to be submitted at the Ministry of Interior. Along with the original application and documents, an additional photocopy of the application and all the documents should also be submitted.

All the documents issued by a foreign authority should be translated to either Greek or English and be duly authenticated (They should bear the stamp «APOSTILE», if they are issued by countries that have signed the Hague Convention, otherwise they should be sealed by the Ministry of Foreign Affairs of the issuing country and the diplomatic mission of the Republic of Cyprus in the issuing country).

The spouse of the non-Cypriot investor has the right to apply for the citizenship simultaneously with the investor. For further information see the Tab/Section “Investors’ Family Members” on this page.

Examination procedure of an application

Once an application is submitted the examination process begins. First of all, the documents relating to the business activities and investments of the applicant in Cyprus are sent to the Ministry of Finance for evaluation and views on whether the applicant indeed meets any of the criteria established by the Council of Ministers. Simultaneously, the Ministry of Interior investigates whether the applicant meets the other conditions of the abovementioned Decision of the Council of Ministers. If the applicant meets the Criteria and Conditions of the Decision, the Minister of Interior presents the case to the Council of Ministers for final decision. Once the application is approved, the Civil Registry and Migration Department issues the Certificate of Naturalization, following payment of the amount of €5.000 that constitutes the Naturalization Certificate issuing fee.

Provided that such an application is dully submitted and accompanied by all the necessary supporting documents and the investor meets the criteria and conditions of the Decision of the Council of Ministers, the time frame for the completion of the process is approximately 3 months. It should be noted that the application submission date is the date on which the submission fees were paid that is noted on the receipt issued by the Cashier’s Office of the Ministry.

1. Legal Framework

The Decision of the Council of Ministers dated 19.3.2014 provides for the grant of the Cypriot citizenship to the spouse as well as to the financially dependent adult children (eighteen years old or above) of the investor. Neither the spouse nor the children are obliged to meet any financial criteria.

Finally, the minor children (under the age of eighteen) of an investor have the right to acquire the citizenship according to the provisions of section 110 (3) of the Civil Registry Law.

2. Submission of an Application

Investor’s Spouse

The application is submitted to the Ministry of Interior, where the amount of €2.000 is paid as fees. The application can be submitted along with the application of the investor, so that both spouses will be able to acquire the Cypriot citizenship simultaneously. The list of the necessary documents is as follows:

Application Form M127 fully completed and signed before a Registrar of a Cypriot court or a consular officer

Copy of the investor’s Certificate of Naturalization (if the application is not submitted simultaneously with the investor)

Copy of the investor’s Cypriot passport (if the application is not submitted simultaneously with the investor)

Birth Certificate

Copy of passport

Certificate of criminal record from the country of residence of the applicant

Marriage Certificate

Copies of advertisements in a daily newspaper two consecutive posts

Two passport size photographs

Curriculum Vitae

Important Notes

The original application (M127) and all the required documents original documents are to be submitted at the Ministry of Interior. Along with the original application and documents, an additional photocopy of the application and all the documents should also be submitted.

All the documents issued by a foreign authority should be translated to either Greek or English and be duly authenticated (They should bear the stamp «APOSTILE», if they are issued by countries that have signed the Hague Convention, otherwise they should be sealed by the Ministry of Foreign Affairs of the issuing country and the diplomatic mission of the Republic of Cyprus in the issuing country).

Once the application is approved, the amount of €5.000 (Naturalization Certificate fees) must be paid.

Investor’s adult children (eighteen years old or above)

The application is submitted to the Ministry of Interior, after the investor had acquired the Cypriot citizenship. The amount of €2.000 has to be paid as fees. The list of the necessary documents is as follows:

Application Form M127 fully completed and signed before a Registrar of a Cypriot court or a consular officer

Copy of the investor’s Certificate of Naturalization

Copy of the investor’s Cypriot passport

Birth Certificate

Copy of the applicant’s passport

Certificate of criminal record from the country of residence of the applicant

Marriage Certificate (if applicable)

Copies of advertisements in a daily newspaper two consecutive posts

Two passport size photographs

Curriculum Vitae

Copy of the undergraduate degree (if the applicant studies for a master’s degree)

Certificate of attendance at a Higher Education Institute (Original), or

Medical Certificate attesting the disability (Original)

Important Notes

The original application (M127) and all the required documents original documents are to be submitted at the Ministry of Interior. Along with the original application and documents, an additional photocopy of the application and all the documents should also be submitted.

All the documents issued by a foreign authority should be translated to either Greek or English and be duly authenticated (They should bear the stamp «APOSTILE», if they are issued by countries that have signed the Hague Convention, otherwise they should be sealed by the Ministry of Foreign Affairs of the issuing country and the diplomatic mission of the Republic of Cyprus in the issuing country).

Once the application is approved, the amount of €5.000 (Naturalization Certificate fees) must be paid.

Investor’s minor children (under the age of eighteen)

The application is submitted after the investor had acquired the Cypriot citizenship to the Civil Registry and Migration Department, where it is also processed. The list of the necessary documents is as follows:

Application Form M126 fully completed and signed by the parent before a Registrar of a Cypriot court or a consular officer

Copy of the investor’s Certificate of Naturalization

Child’s Birth Certificate

Parent’s marriage certificate

Copies of the child’s and parents’ passports

Certificate of criminal record from the country of residence of the applicant

Written Consent of the non-Cypriot parent

Two passport size photographs

€80 as fees

Important Note

All the documents issued by a foreign authority should be translated into either Greek or English and be duly authenticated (They should bear the stamp «APOSTILE», if they are issued by countries that have signed the Hague Convention, otherwise they should be sealed by the Ministry of Foreign Affairs of the issuing country and the diplomatic mission of the Republic of Cyprus in the issuing country).

The Ministry of the Interiors has published some questions which are frequently asked by Investors or service providers which are answered as follows:

What is the time frame for the examination of an application?

Approximately three months.

What is the amount of the fees payable for each application?

Concerning the investor the amount of €2.000 is paid at the submission of the application and, if the application is approved, the amount of €5.000 is paid as a fee for the issuance of the Naturalization Certificate.

Concerning the investor’s spouse the amount of €2.000 is also paid at the submission of the application and, if the application is approved, the amount of €5.000 is paid as a fee for the issuance of the Naturalization Certificate.

Concerning the investor’s adult child the amount of €2.000 is also paid at the submission of the application and, if the application is approved, the amount of €5.000 is paid as a fee for the issuance of the Naturalization Certificate.

Concerning the investor’s minor child the amount of €80 is paid at the submission of the application.

In summary the fees are as follows:

APPLICANT APPLICATION SUBMISSION FEE CERTIFICATE ISSUANCE FEE TOTAL

INVESTOR €2.000 €5.000 €7.000

INVESTOR’S SPOUSE €2.000 €5.000 €7.000

INVESTOR’S ADULT

CHILD €2.000 €5.000 €7.000

INVESTOR’S MINOR

CHILD €80 – €80

Investments must necessarily be made by the investor personally or can they be made through company/companies of the investor or an investment fund or an investment foundation?

An investment through a company or fund or foundation is eligible, provided that there is a proven correlation between the investor and the company or fund or foundation.

What conditions must be met, so that a high – ranking senior manager of a company/ companies may apply for Naturalization on the basis of this Scheme?

The first condition that needs to be fulfilled is that the company/ companies that employs the manager must have concluded in Cyprus such an investment that meets one of the economic criteria stipulated in the Decision of the Council of Ministers. If and when the investment is completed the executive may apply for Naturalization provided that he/she has paid or prepaid an income tax amounting to €100.000 for a three-year period and has acquired a permanent residence of purchase value at least €500.000.

What does it mean: “The applicant should have concluded the necessary investments during the three years preceding the date of the application and must retain the said investments for a period of at least three years since the date of the Naturalization?”

It means that for the purpose of filing a Naturalization application in accordance with the provisions of this Scheme, the investor must have concluded the investment during the three years preceding the submission date of the said application. That is to say, if the applicant will submit an application in 2014, the investment must have been concluded during the period 2011 – 2014.

Furthermore, the investor is obliged to retain the investment for at least three years following the acquisition of the Cypriot citizenship. The three-year period begins on the date of the approval of the application by the Council of Ministers.

Elena Karitzis Elena was born in England. She obtained her degree from Pitman’s College in Cyprus. After her studies, she started working with Chrysses Demetriades & Co. LLC (Law Firm) in the Shipping Department as a personal assistant ...